Principles of Insurance - IC 01 Licentiate Practice Exam

The Principles of Insurance (IC 01) exam is the foundation for a career in the Indian insurance industry. It's a mandatory exam for candidates seeking a Licentiate qualification from the Insurance Institute of India (III).

Who should take the exam?

• Individuals aspiring for careers in the insurance industry as agents, brokers, or other entry-level positions.
• Insurance professionals seeking to enhance their foundational knowledge.
• Anyone interested in understanding the core principles and concepts of insurance.

Exam Details:

• Exam Name: Principles of Insurance - IC 01 Licentiate
• Format: Multiple-choice questions (MCQs)
• Duration: 2 hours
• Number of Questions: 100 MCQs
• Passing Score: Minimum of 60% marks required

Course Outline

The exam can cover the following topics:

Chapter 1: Overview of Risk Management

• Provides an understanding of risk management - different types of risks - actual and consequential losses – management of risks – loss minimization techniques.

Chapter 2: Learn The Concept of Insurance and its Evolution

• The basics and nature of insurance – evolution and nature of insurance - how insurance operates today – different classes of insurance – importance of insurance - how insurance takes care of unexpected eventualities.

Chapter 3: The Business of Insurance

• Management of risk by individuals – management of risk by insurers – fixing of premiums – reinsurance and its importance for insurers - role of insurance in economic development and social security - contribution of insurance to the society.

Chapter 4: Understand The Insurance Market

• The various constituents of the insurance market – operations of insurance companies - operations of intermediaries – specialist insurance companies – insurance specialists - the role of regulators – other bodies connected with insurance.

Chapter 5: Learn about Insurance Customers

• Understanding insurance customers – different customer needs - importance of customers – customer mindsets - customer satisfaction - customer behavior at purchase point - customer behavior when claim occurs - importance of ethical behavior.

Chapter 6: The Insurance Contract

• Terms of an insurance contract - principles which form the foundation of insurance - significance of the principle of insurable interest – the principle of indemnity - the principle of subrogation - the principle of contribution – disclosure of all relevant information - principle of utmost good faith - the relevance of proximate cause - the insurance contract.

Chapter 7: Understand Insurance Terminology

• Common terms used in insurance - terms common to both life and non-life insurance - terms are specific to life and non-life insurance – how insurance terms are used.

Chapter 8: Life Insurance Products

• The risk of dying early – the risk of living too long - different products offered by life insurers - term plans - pure endowment plans - combinations of plans - traditional products - linked policies - features of annuities and group policies. 

Chapter 9: Explore General Insurance Products

• Risks faced by the owner of assets – exposure to perils – features of products covering fire and allied perils - products covering marine and transit risks - products covering financial losses due to accidents - products covering financial losses due hospitalization - products covering miscellaneous risks.